Hashlet Prime Upgrade : 2 Upgrade Options Announced on HashTalk.org
2 Upgrade Options for Hashlet Primes
GAW Miners CEO Josh Garza posted an announcement regarding Hashlet Upgrades on hash talk.org.
If you own any Hashlet at GAW Miners' Zen Cloud, the announcement is worth checking out. You can check the announcement here.
In the announcement, Josh Garza talked about how Hashlet Primes are going to play out in Paycoin's ecosystem.
This is the part where we were most interested in as we had come to understand that Hashlet Primes were positioned as GAW's flagship products, but we didn't quite understand how that could be as the ROI for Hashlet Primes were quite low.
After today's announcement, we now understand that Hashlet Primes are indeed 'Prime' and they will come to stand out from all other products if Paycoin is successful as a crypto currency.
Option 1 : 269-359% ROI in 6-7 Months ! Quick Profits!
The first option that was offered was to convert 1 MH of Hashlet Prime into 5-slots of 6 month HashStakers.
Since 1 slot of 6 month HashStakers are currently retailing for $17.95, 5 slots are worth $89.75.
If you had purchased a Hashlet Prime for $50, then the conversion to HashStaker alone would increase its value 179.5% to $89.75.
On top of this conversion, there are mining profits to be considered, since Primes will be able to continue to mine Hash Pool during the PoW phase of Paycoins. However, the conversion of HP to PC is unknown for PoW phase (it's 400 HP = 1PC for the 2nd ICO round) so an exact calculation is difficult.
There are also profits generated from HashStaker in the 6 months that it runs. This is estimated to be 50 -100% of the retail value of HashStakers, or $44.89 to $89.75.
Although the mining profits have yet to be determined, even without taking into account mining profits, it's easy to see Hashlet Primes, if purchased at $50/MH, would easily yield an ROI of 179.5% in just a couple of weeks (from the conversion alone), and an ROI of over 269-359% in 6-7 months (from conversion and staking).
Option 2 : ConvertingHashlet Prime to HashStaker Primes for About $100 Per Year of Staking Payouts
The second option for Hashlet Prime holders is to convert Hashlet Primes into HashStaker Primes on a 1:1 ratio.
1 HashStaker Prime will generate about $100 a year of Paycoins at 1 PC=$20 (or 5 Paycoins a year) from just staking.
The best feature about HashStaker Primes is that they will never expire. They will continue to generate Paycoins from staking continually year after year.
Option 2 is a great option for the long-term investor who is willing to bet on the future of Paycoin.
The fact that HashStaker Primes will continue to generate Paycoins year after year will lead to great ROI if Paycoin is successful.
For example, in a span of just 5 years, staking of 1 Hashlet Prime converted to HashStaker Prime will generate around 500% in ROI.
Add the potential upside for Paycoin value to increase to 1PC=$40 from the original 1PC=$20, even 1,000% ROI in 5 years is not unrealistic.
Although option 1 may yield 269-359% in 6-7 months (which is attractive), after the 6 month HashStaker expires, additional slots will have to be purchased every 3-6 months, and the price per HashStaker will most likely change from what they are today.
Both Options are Attractive, but We're Taking Option 2
After reading the announcement, we found that both options are attractive.
But, since we prefer to 'Buy-and-Hold'on most of our investments, we liked option 2 more, as staking was to set to continue forever (well, unless GAW goes bankrupt...).
Some questions regarding the future of Paycoins are still unanswered like
(a) Is the $100 million reserve that is supposed to back Paycoin already in place (it's an important factor when it comes to preventing the value of Paycoins from crashing)?
(b) What will the conversion rate for HPs mined during PoW phase (is the 400HP=1PC conversion for ICO round 2 applicable to PoW phase)?
But, GAW's work up to this point, conceptualizing and executing Paycoin along with Paybase and The HashStaker and HashStaker Primes all in a matter of just a few months have been truly impressive (they are really fast!)
If anything, it shows this company is able to come up with big ideas and execute in an unbelievably fast time frame.
Although Paycoin has yet to be proven, and "1PC=$20" could potentially be just another sales pitch, the level and pace of execution has been great and we have faith that GAW will be able to make Paycoin happen.
We like that they are a US based organization that is fully compliant with existing regulations and that they appear to have enough fiat funds to execute on their grand plans.
This is a big advantage in an industry where most cloud mining companies lack substantial financing and the resources to work with regulatory boards.
Anyway, long story short, we decided to buy some more Primes and now have 75 MH of Hashlet Primes.